What are the Mandatory Benefits for employees in Ghana?

In Ghana, several mandatory benefits are provided to employees to ensure financial security and access to essential services.

Social Security Contributions in Ghana

In Ghana, employees and employers both contribute to the Social Security and National Insurance Trust (SSNIT) to support retirement and social welfare. Employees contribute 5.5% of their basic salary, while employers contribute 13%. These contributions are mandatory and help employees secure financial support for retirement, disability, and other long-term needs.

Healthcare: National Health Insurance Scheme (NHIS)

Healthcare coverage in Ghana is provided through contributions to the National Health Insurance Scheme (NHIS). Contributions are deducted as part of the SSNIT system, granting employees access to basic healthcare services under the national scheme. This includes primary care and treatment for common medical needs, helping ensure that employees and their families have access to essential health services.

Gratuity and Severance Pay

Gratuity

Gratuity is a financial benefit paid to employees based on the duration of their service. In Ghana:

• Employees with at least 5 years of service are eligible for a gratuity of at least 15 days' basic pay for each completed year of service.
• For employees with less than 5 years of service, the gratuity is calculated at 2.5 days of basic pay per year worked.

Gratuity rewards long-term service and loyalty, providing additional financial support upon departure from a company.

Severance Pay

Severance pay is provided in cases of redundancy or involuntary termination. The calculation is based on the employee's length of service:

• For each completed year of service, employees are entitled to 30 days’ basic pay.
• For employment lasting less than one year, severance is calculated at 2.5 days per month worked.
  
  

Severance ensures financial support during transitions caused by redundancy or unexpected job loss, assisting employees in maintaining financial stability during their search for new employment.